By Dean Seal

Best Buy is set to release its first-quarter results on Thursday before the market opens. Here is what you need to know.

PROFIT: The electronics retailer is expected to post a profit of $229.9 million for the quarter ended May 3, according to the consensus estimate of nine analysts polled by FactSet. That's down from $246 million in the same quarter a year earlier.

EARNINGS: On both an adjusted and unadjusted basis, earnings are expected to come in at $1.09 a share, according to the forecasts of 21 analysts surveyed by FactSet.

SALES: Revenue is projected to tick down to $8.81 billion from $8.85 billion, according to the estimates of 20 analysts polled by FactSet.

The stock fell 21% during the quarter and was recently changing hands at $72.02.

WHAT TO WATCH

-- Pre-orders for the Nintendo Switch 2 kicked off on April 24 and are expected to boost the company's top line, according to analysts.

-- Foot traffic is tracking to be lower year over year but higher than the prior quarter, likely in part because of a pull forward in demand from the global tariff war as shoppers rushed to get products before new levies were implemented, Bank of America analysts said in a research note last week. The first quarter is typically the company's weakest, so the stock-up buying should help comparable sales, the analysts said.

-- While tariffs have come down from the sky-high levels originally set by President Trump, the current rates on imports are still a sizable headwind given Best Buy's significant exposure to China, Wedbush analysts said in a research note last week. They expect the retailer will revise its full-year guidance lower to account for the tariffs and the macroeconomic uncertainties they have created.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 28, 2025 14:36 ET (18:36 GMT)

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